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Why would a CEO get paid 100 times more than the average employee? Are they worth it?

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No, but a CEO can easily add 1,000 times to the value of the company with a decision made in 20 seconds than a typical employee might add in a year.

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  • Take Tim Cook, CEO of Apple, which has a market cap of US$750bn. If he makes one good decision today that increases the value of Apple by 0.1%, he would have added US$750m of value to Apple. And he might have made that decision while doing a number two(on the loo).
  • The average Apple employee, even if they add around US$500k of value to Apple per year would take 1,500 years to add as much value as Cook could do while doing his number two today.

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